Silver is currently priced above $57.00, down from its peak of $58.85. Improved market sentiment has put pressure on precious metals, and technical indicators hint at possible further corrections. Silver’s rise stopped shy of $59.00, with support found at $56.60 before it climbed back above $57.00. A recent auction of Japanese 10-year bonds was well-received, reducing worries about potential interest rate hikes in December. This had an impact on global bond markets, boosting demand for precious metals as safe havens. The 4-hour chart shows XAG/USD at $57.06, with slight daily losses. Support is above $56.60, but $57.50 is a resistance level for buyers. Technical tools like the MACD and RSI indicate bearish trends and possible consolidation. Immediate support is at $56.58, with other levels at $55.40 and $55.04. Buyers need to break through $57.50 to aim for $58.85 and eventually $60.00. Silver is valued not just for its beauty but also as a safeguard against inflation. Its price is influenced by global events, interest rates, and the US Dollar’s strength. Silver often tracks gold’s movements but has unique drivers due to its industrial use. Changes in industrial demand—especially in electronics and solar energy—can significantly impact prices. With silver pulling back from the record high of $58.85, the momentum is shifting. As of December 2, 2025, the safe-haven demand that drove prices up appears to be fading, suggesting more downward pressure may be ahead. Technical signals indicate a deeper correction, so traders should be careful about starting new long positions. With indicators like the MACD showing increasing bearish momentum, support at Monday’s low of $56.58 may be tested. Those who are pessimistic might look into put options or short futures, aiming for the mid-$55 range as the next goal. For those bullish on silver, a clear break above the resistance at $57.50 is essential before making new moves. A push above this level could indicate the pullback is over and set the stage for another challenge at the $58.85 high. Until we see confirmation, patience is wise, as volatility remains high. It’s also important to consider the solid industrial demand that has been a consistent theme throughout 2025. Early year data revealed that global solar panel installations and electric vehicle production continued to grow, consuming significant amounts of silver. This underlying demand may help limit how deep any corrections go. The broader monetary policy landscape is another important factor to watch. After the Federal Reserve took a more cautious approach earlier this year, the US Dollar has faced mild pressure, which typically supports precious metal prices. Although the gold-to-silver ratio is lower than its peak in 2024, some believe silver remains undervalued compared to gold, offering potential upside if interest in precious metals increases again.

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